Tennessee Title Loans: How They Work

What to know about title pawns and title loans in Tennessee: APR ranges, what lenders typically require, and lower-cost alternatives to consider first.

Last reviewed on April 27, 2026.

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Tennessee Title Loan Overview

Tennessee Title Loan Rates

APR Range: 200% - 264%
Status: Allowed
Typical Loan Amount: $500 - $10,000
Approval Time: 30 min - 2 hrs

About Tennessee Title Loans

Tennessee title loans are legal and operate under the Tennessee Title Pledge Act, with lenders in Memphis, Nashville, Knoxville, Chattanooga, and most mid-sized towns.

The Act caps principal at $2,500, sets 30-day terms, and allows interest of 2% per month plus a fee of up to one-fifth of the original principal each month — a combined cost of about 22% per month, or roughly 264% APR.

Use our loan calculator to estimate your monthly payment based on Tennessee's typical interest rates.

Title Pawns by Tennessee City

Nashville

State Capital

Memphis

Major City

Knoxville

Major City

Chattanooga

Major City

How Do Title Loans Work in Tennessee?

  1. You pledge the title. The lender inspects the vehicle, keeps the original title, and advances up to $2,500 (the statutory maximum) based on the car’s value.
  2. The term is 30 days. At the end of the month you either pay principal plus the month’s charges and get the title back, or renew.
  3. Renewals must reduce principal. Tennessee law requires that, after the second renewal, each further renewal include a principal payment of at least 5% of the original amount — a modest brake on indefinite rollovers.
  4. Grace period before repossession. If you don’t pay or renew, the lender must wait a further 20 days after the term ends before it can take possession of the vehicle.
  5. Sale and surplus. After repossession the lender may sell the car; any surplus above what you owe is due back to you.

The 2% interest looks small in the ad; it is the one-fifth “fee” that makes Tennessee title loans expensive. Use our title loan calculator with an APR around 264% to see the real monthly cost, and check the alternatives first.

Tennessee Title Loan Requirements

To qualify for a title loan in Tennessee, you'll typically need:

Requirements vary by lender. See our complete guide to title loan requirements and how to choose a lender near you.